WEST SHORES HOMEOWNERS ASSOCIATION

WEST SHORES HOMEOWNERS ASSOCIATION2021 Annual Lot Owners Meeting

Welcome to the West Shores Annual Lot Owners Meeting hosted as a Zoom Webinar.

All meeting attendees have a muted audio line. The video feature has been disabled to optimize our bandwidth and minimize distractions.

Please submit questions using the Q&A feature in the webinar. The board panelists will do their best to answer questions during our meeting.

All Q&A submitted through the webinar will be posted to the West Shores website by January 13th.

Mark Dunbar

JanaWheatley-

Renault

Ryan Horner

Carl Bortol

Bruce Meyer

CherylOsterloh

Open

WEST SHORES HOMEOWNERS ASSOCIATIONOpening Remarks – What a year

Carl A. Bortol, Jr.

WEST SHORES IS STRONG• Our community is in a great place

• Lake is healthy – more to come

• Home sales continue to be strong

• We see continued investments into property at West Shores by homeowners

• Our S.I.D. continues to make improvements to our community while lowering our tax levy

• Even in these hard times, we continue to have community involvement and events

WHAT WE EXPERIENCED• Pandemic impacts were real at the lake

• Increase in home renovations• Both inside and outside projects

• Cancellation of our traditional social events

• Progressive Dinner

• Fish Fry / Forth of July activities at the park

• Traditional Halloween activities at the park

• Increased lake utilization

• Increase in new boats on the lake

WHAT WE EXPERIENCED• Pandemic impacts were real at the lake

• HOA Board started meeting via Zoom

• Dealing with new unexpected topics

• Many of the impacts from the pandemic increased the tasks handled by the board and our other volunteers

• Boat registrations, Safety issues, boat patrol staffing, design review board integration, builder covenant enforcement, security

• Moving our Annual meeting to a Virtual format

• Our volunteers and the board stepped up to meet these challenges the best they could while navigating the pandemic personally

WHAT WE EXPERIENCED

• Food Trucks at West Shores

• The HOA coordinated a number of food trucks to be at West Shores during the year to bring a few dinning options to our residents without them needing to leave the community

• Was well received and will continue into 2021

WHAT WE EXPERIENCED

• Fireworks tradition continues

• Due to the construction in the marina, our normal “Launch site” was no longer available

• Board evaluated best options to provide a great fireworks experience to the entire lake and decided to move the show to the island

• Feedback from our residents was overwhelmingly positive

WHAT WE EXPERIENCED

• The first annual West Shores resident Car Show!!• Added to the Fourth of July weekend

• Limited to only West Shores resident owned vehicles

• Snacks and Beverages provided by the HOA

• A safe socially distanced event

• Great turnout of cars and great feedback from attendees

• Looking forward to our 2021 show

WHAT WE EXPERIENCED

• The West Shores “Halloween Haunt” scavenger hunt

• Coordinated effort between the HOA and our West Shores social committee

• Activity was available for multiple hours on a “come as you like” basis

• Safe, socially distanced event

• Costume contest via photo submission

• Treats and trinkets for all participants at 12 stations

• Great turnout and great feedback from attendees

WHAT WE EXPERIENCED• The Serious stuff

• Ongoing covenant violation enforcement

• Boating/Lake safety

• Water Level due to drought

• Be kind and considerate to your neighbors

• Keep your pets on your property and controlled at all times

• Keep your trash cans inside

• Keep vehicles off of common grounds such as triangles and circles

WHAT WE EXPERIENCED

• A BIG Thank You!!• To all our volunteers that help make our lake community the

best in our area

• Social Committee

• Boat registration/gate keepers

• Lake & Habitat committee

• HOA Board Members

• And everyone else that has helped in any way this last year

WEST SHORES LAKE AND HOMEOWNERS ASSOCIATION

Treasurer’s Report

2021 Annual Meeting

January 7th, 2021 via ZOOM

AGENDA

• Dues and Collections for 2021

• Accounting Basis at WSHOA

• Financial Annual Report Highlights

• Gas Pump Review for 2020 and Outlook for 2021

• 2021 Budget Highlights

Wetlands Sunrise

DUES AND COLLECTIONS

• Dues remain at $650 per year--one annual payment.

• Dues Letter has been released.

• Due Date: Postmarked by February 15, 2021

• For Dues Postmarked after:

• February 15, $50 late fee added

• March 1, $150 late fee added, 12% interest and lien filing

Big Moon over the Lake

ACCOUNTING BASIS AT WSHOA

• Simple ”cash-basis” bookkeeping at West Shores.

• We collect dues, pay expenses, manage covenant compliance, manage the lake and pay taxes. WSHOA does not borrow money from any entity.

• IRS permits HOA’s to report on a simplified cash basis (IRC Sec. 446 and 528(c)). To date, it has worked to our advantage.

• The Board has instituted DOA controls and data security procedures on all cash accounts..

• Would we change to GAAP/accrual? If it was required by IRS or in our interest to do so, we would. It would be expensive.

Treasurer’s Comments:

1. Strong Cash Position to remediate Lake or other infrastructure issues.

2. Continue to follow 2018 Board Investment decision to consolidate deposits portfolio with Morgan Stanley. Union Bank CD will mature in March and we expect to add to Morgan Stanley positions. Yield curve is improving for our Deposits profile..

3. 25 new Construction Impact Deposits in 2020, with 12 redemptions from current and prior years. Confidence that homeowners continue to invest in our neighborhood and property values remain high.

COMPARATIVE BALANCE SHEET

As of 12/31/20 As of 12/31/19 $ ChangeASSETS:

Operating Accounts:

Checking-CIT Bank $ 50,485.57 $ 30,119.97 20,365.60$ Money Market Acct-Premier Bank 50,204.24 50,083.76 120.48 Total Operating Accounts $ 100,689.81 $ 80,203.73 20,486.08$ Investment Accounts:

Morgan Stanley - Cash Account $ 288,040.87 $ 1.23 288,039.64$ CD - Union Bank 102,373.32 99,839.89 2,533.43 CD - Foundation One Bank 0.00 178,071.23 (178,071.23) CD's - Morgan Stanley Investments 200,000.00 300,000.00 (100,000.00) Total Investment Accounts $ 590,414.19 $ 577,912.35 12,501.84$

TOTAL ASSETS $ 691,104.00 $ 658,116.08 32,987.92$

LIABILITIES AND EQUITY:

Liabilities:

CID Deposits Held $ 112,011.60 $ 74,511.60 37,500.00$ EQUITY:

Unrestricted Net Assets $ 583,604.48 $ 573,634.55 9,969.93$ Net Income-Cash Basis (4,512.08) 9,969.93 (14,482.01) TOTAL EQUITY $ 579,092.40 $ 583,604.48 (4,512.08)$

TOTAL LIABILITIES AND EQUITY $ 691,104.00 $ 658,116.08 $ 32,987.92

West Shores Lake and Homeowners Association

Balance Sheet Comparison

As of December 31, 2020 and December 31, 2019

Treasurer’s Comments:

1. WSHAO incurred Non-Budgeted Expenditures authorized by the Board of Directors in June, 2020 with both Legal and Engineering components. This project resulted in approximately $39,500 in Administrative expenses and Lake Expenses. Mark Dunbar will discuss in further detail.

2. Additional Legal Expenses for Covenant Enforcement. This will be ongoing and will also impact the Budget for 2021.

3. New Contract with Papillion Sanitation for Trash and recycling services increased costs $7,470 per year. This is about a $30 per month increase per home and below the projections of the budget last year.

COMPARATIVE INCOME STATEMENT

Jan - Dec 2020 Jan - Dec 2019 Change

Income:

Homeowners' Dues & Late Fees 176,495.36 147,462.60 29,032.76 Boat Registrations 220.00 35.00 185.00 Construction Inspection Fee 500.00 450.00 50.00 Fines, Fees & Interest Charged - 823.69 (823.69) Interest on CD's & Savings 12,772.32 10,319.42 2,452.90 Directory Receipts 8,100.00 1,750.00 6,350.00 Other Miscellaneous Receipts 7.50 1,380.00 (1,372.50)

Total Income 198,095.18$ 162,220.71 35,874.47

Expenses:

Gas Pump Operations 11,966.21 10,236.90 1,729.31

Administrative Expenses 33,545.37 12,378.92 21,166.45 Insurance 20,425.10 21,063.81 (638.71) Lake Expenses 44,424.85 16,243.30 28,181.55

Maintenance 16,296.58 15,476.17 820.41 Other Expense Items 68,602.05 65,866.39 2,735.66

Taxes 7,347.10 10,985.29 (3,638.19)

Total Expense 202,607.26 152,250.78 50,356.48

Net Income (Loss) (4,512.08)$ 9,969.93 (14,482.01)

West Shores Lake and Homeowners AssociationIncome Statement Comparison

As of December 31, 2020 and December 31, 2019

GAS PUMP OPERATIONS 2020Treasurer’s Comments:

• Gallons sold in 2020 were nearly 60% more than 2019. This reflects high usage of the lake during the COVID-19 Pandemic.

• Board decided in June 2020 to price gasoline sold at our pump at a market reference price. We also voted to continue this pricing for 2021.

• Although we don’t account for inventories in our financial statements, we track it diligently. We had 7,447 gallons in the storage tank on 12/31/20 and 5127 gallons at 12/31/2019.

• For 2021, we have budgeted technology upgrades and software improvement to our pumping station to improve service and pricing.

Actual 2020 Calendar 2019

Gallons Sold: 21,689 13,679

Average Selling Price 2.43$ 3.70$

Sales Revenue 52,762.87$ 50,612.30$

Cost of Sales 46,573.33$ 39,606.00$

Gross Margin 6,189.54$ 11,006.30$

Expenses of Gas Pump:

Lease Fee 9,006.26$ 8,750.00$

Maintenance Contract on P 2,650.00$ 6,582.00$

Credit Card Fees 3,984.28$ 2,941.00$

Travis Contract Fees 1,000.00$ 1,000.00$

Insurance -$ 850.00$

Electricity 563.96$ 564.00$

Phone Line 800.12$ 675.00$

Fire Marshall Fee 151.13$ 120.00$

Total Expenses 18,155.75$ 21,482.00$

NET PROFIT/(LOSS) (11,966.21)$ (10,475.70)$

Gas Pump Results (Cash Basis)

As of 12/31/2020 and 12/30/19

BUDGET FOR 2021

Income: Budget 2021 Jan - Dec 2020 Jan - Dec 2019

Homeowners' Dues & Late Fees 180,700 176,495 147,463 Boat Registrations 200 220 35 Construction Inspection Fee 600 500 450 Fines, Fees & Interest Charged - - 824 Interest on CD's & Savings 11,200 12,772 10,319 Directory Receipts 2,000 8,100 1,750 Other Miscellaneous Receipts 1,000 8 1,380 Total Income 195,700 198,095 162,221

Expenses:

Gas Pump Operations 9,366.20 11,966.21 10,236.90Administrative Expenses 30,100.00 33,545.37 12,378.92 Insurance 21,800.00 20,425.10 21,063.81 Lake Expenses 20,900.00 44,424.85 16,243.30 Maintenance 18,570.00 16,296.58 15,476.17 Other Expense Items 83,200.00 68,602.05 65,866.39 Taxes 8,750.00 7,347.10 10,985.29

Total Expense 192,686.20 202,607.26 152,250.78 Net Income (Loss) 3,013.80 (4,512.08)$ 9,969.93

Treasurer’s Comments

• Additional $ allocated to the Social Committee as COVID-19 recedes

• Additional $ allocated to Holiday Lighting for other entrances

• Additional $ allocated to upgrade of Fuel Pump Software and Wi-Fi at the pump shed

• Additional $ allocated to safety cameras and equipment at the Marina and other locations.

COVENANT ENFORCEMENT REPORTCheryl Osterloh

COVENANT ENFORCEMENT REPORT

The West Shores HOA is responsible for monitoring the West Shores Development for Compliance to our Covenants.

The HOA inspector performs weekly checks throughout the neighborhood. The inspector is checking for general covenant violations and monitors all property improvements that require a Construction Impact Deposit (CID).

The HOA and Design Review Board received 25 New CID’s in 2020

12 CID’s were returned in 2020.

If your family is planning any property improvement, please follow the process outlined in Article I. Restrictions and Covenants.

If your unclear if your project needs to follow this process, please reach out to any board member.

2020 ELECTRONIC ELECTIONSMark Dunbar

ELECTRONIC ELECTIONS• In December 2019, electronic voting was adopted

• Currently, 80% (232) of the 291 lots have designee

• In 2020 and 2021, electronic voting used for board elections

• Greatest benefit re Covenant and Lake Rule amendments

• In 2020, six Lake Rule amendments adopted re boating

• In 2020, one Covenant amendment adopted re notary

• Info appears on new Governance page on website

WATER SAFETY REPORTRyan Horner and Carl A. Bortol, Jr.

WATER SAFETY• How it works

• Boat Patrol reports

• Resident Reports

• What we do

• Record reported violations on a spreadsheet

• Contact Homeowners

• Monitor repeat offenders

• Fines and revocation of boating privileges

WATER SAFETY• What we need you to do

• Don’t argue with the boat patrol

• Take safety seriously

• Please review the Nebraska State rules along with West Shores specific lake rules

• All boaters born after December 31, 1985 are required to obtain a State Boating Course Certificate to operate a boat or personal watercraft

• Be mindful of your fellow residents

• Remember that is you do get a call, the person making the call doesn’t want to be on it either

WATER SAFETY• 114 Reported water violations – Very busy time on the water this year

• Most common issues

• Going over 5 MPH within 90 feet – Must be 5 MPH or less

• Left turns picking up a tow

• Not using the orange flag

• Entering Marina area with tow and or making a wake

• No Life Jackets on paddle boards and kayaks

• People dangling body parts in water while underway

• No lights after dusk

• 24 of the 114 issues were related to lot sticker placement

WATER SAFETY• Wake Surfing

• Has become a very popular water activity around the country

• It NOT against any current or past West Shores lake rule

• Concern about boaters filling tanks on their boats to enhance surf size

• Lake rules state:

• No water bladers (Bladders?), weighted transoms or modifications to increase boat wake is allowed

• Many of the boats come from the factory with fillable tanks, these are not modifications

• What was the original intent?

• We feel a lake rule amendment will be required to provide any enforceable rule to be put in place

WATER SAFETY• Summary

• We need everyone's help in making West Shores a safe and fun community

• If you see a violation, please report it. You are not reporting your neighbor, you are keeping all our children and grandchildren safe on the water.

• Get your boat sticker in the correct location – verification by HOA will begin in the spring

• Boat patrol getting revamped in 2021- Boat patrol here for everyone's sake

• Be mindful and kind

2020 WATER QUALITY TESTINGMark Dunbar

2020 WATER QUALITY TESTING

• New annual contract for seasonal monthly testing with Nebraska Lake Management, LLC.

• Sampling occurs in two location for five months

• 2020 results for nitrogen, phosphorus, E. coli and water clarity were all within limits, except phosphorus went a bit high later in summer.

• Direct your lawn care personnel to use zero phosphorus—the middle number on a fertilizer bag.

2020 FISHINGMark Dunbar

FISHING• Fishing page created on website, with rules

regarding guests, trespassers and catch limits.

• 2020 fish stocking in spring of 2,500 4-6” bluegill in fall of 2,000 6-8” walleye.

• Board relies on Lake & Habitat committee for advice

• 2020 authorized a committee project re habitat creation using selectively harvested cedars

2020 HYDROGRAPHICS / BATHYMETRICSMark Dunbar

HYDROGRAPHICS / BATHYMETRICS• History page created on website re lake construction

• 2001 Century Development ordered Hydrographic survey by TD2 Engineers (Thompson Dreeson Dorner)

• Rumor & speculation regarding potential dredging

• 2018 HOA ordered lake depth survey by Farmers National

• 2020 HOA ordered Hydrographic study and bathymetric change analysis by Stockwell Engineers and TD2 Engineers

2020 METHODOLOGY• July 2020 Survey prepared by Stockwell Engineers

• Survey accuracy to 0.05 feet (about ½”)(same as 2001)

• 881 points mapped

• Hydrographics and bathymetric change analysis prepared by TD2 Engineers

BATHYMETRIC CHANGE ANALYSIS• Median lake depth in 2020 is 11.6 feet vs. 11.5 feet in 2001,

a difference of -0.1 feet (about 1-3/16”)

• Average change in lake depth: -0.086 feet (about 1”)

• Median change in lake depth: 0.002 feet (about ¼”)

• Volume of lake in 2020: 3,859,856 gallons

• Change in lake volume: 23,113 gallons (0.006%)

Bottom of LakeElevation Change Comparison

2001 to 2020

DREDGING RISK DISCUSSION• Sand deposits from periodic flooding is the most significant

risk facing area lakes, but the design of West Shores has proven very effective at preventing flooding.

• Runoff from watershed or undeveloped lots would be a significant risk, but design of West Shores limits watershed and development within watershed is 98% complete and is controlled.

• Shoreline maintenance and some spot work will always be necessary, but the lake as the same basic bathymetric profile it had when it was built 20 years ago. There is no shallowing of the lake indicating a need for future dredging.

WEST SHORES S.I.D. REPORTSID Board Members

Your S.I.D. Resident Board Members

Gary Demmel

Warren Hanson

BobEdick

S.I.D. 2020 UPDATE• The SID is responsible for the maintenance and building of the entire infrastructure in

West Shores. This includes the roads, sewer and all the common areas including all circles, triangles and perimeter areas including the park. The lake and the island are owned by the homeowners and they are responsible for the maintenance of that property.

• Your SID taxes represent about 25% of your real estate taxes. The 2020 taxable valuation of West Shores has grown from 143 million dollars in 2013 to 236 million dollars in 2020. We have been able to refinance our 8-million-dollar debt at a very favorable rate, averaging a little less than 3%. Because our cost is relatively fixed, we have been able to lower the mill levy substantially and now have one of the lowest mill levy rates in Douglas County. We should be able to keep lowering the levy some each year for a while. The following is the mill rate since 2012:

• 2012---.80 2013---.73 2014---.73 2015---.69 2016---.67 2017---.64 2018---.58 2019---.57 2020---.56 2021---.50

• This means the tax rate per 100,000-dollar valuation has gone from $800 to $500. Even though our mill levy keeps dropping, your total real estate tax bill has gone higher. This is because the rest of the entities that tax us make up about 75% of our real estate taxes and they have taken advantage of our rising valuation.

S.I.D. 2020 UPDATE

• ROADS

• All the roads have been resurfaced so we just have to maintain them.

• IRRIGATION

• The SID has drilled two wells so we will no longer be buying water from the City of Waterloo for irrigation. We have all five entrances irrigated with well water as well as the park , and all interior common grounds including all circles and triangles. Our task now is to maintain the system and regulate the amount of water needed for irrigation. We have installed fencing around both well pumps and plan to install fencing around the well pump controls to help with the aesthetics.

• SEWER

• The SID is continuing to work on the ozone system at the main lift station to eliminate the odor. We have installed fencing around the lift station equipment this year to help with the aesthetics.

WEST SHORES HOMEOWNERS ASSOCIATION

2021 Annual Lot Owners Meeting

Thank you for attending